SEC. 1631. ENHANCED CMS PROGRAM PROTECTION AUTHORITY.

[a] In General- Title XI of the Social Security Act [42 U.S.C. 1301 et seq.] is amended by inserting after section 1128F the following new section:

'SEC. 1128G. ENHANCED PROGRAM AND PROVIDER PROTECTIONS IN THE MEDICARE, MEDICAID, AND CHIP PROGRAMS.

'[a] Certain Authorized Screening, Enhanced Oversight Periods, and Enrollment Moratoria-

'[1] IN GENERAL- For periods beginning after January 1, 2011, in the case that the Secretary determines there is a significant risk of fraudulent activity [as determined by the Secretary based on relevant complaints, reports, referrals by law enforcement or other sources, data analysis, trending information, or claims submissions by providers of services and suppliers] with respect to a category of provider of services or supplier of items or services, including a category within a geographic area, under title XVIII, XIX, or XXI, the Secretary may impose any of the following requirements with respect to a provider of services or a supplier [whether such provider or supplier is initially enrolling in the program or is renewing such enrollment]:

'[A] Screening under paragraph [2].

'[B] Enhanced oversight periods under paragraph [3].

'[C] Enrollment moratoria under paragraph [4].

In applying this subsection for purposes of title XIX and XXI the Secretary may require a State to carry out the provisions of this subsection as a requirement of the State plan under title XIX or the child health plan under title XXI. Actions taken and determinations made under this subsection shall not be subject to review by a judicial tribunal.

'[2] SCREENING- For purposes of paragraph [1], the Secretary shall establish procedures under which screening is conducted with respect to providers of services and suppliers described in such paragraph. Such screening may include--

'[A] licensing board checks;

'[B] screening against the list of individuals and entities excluded from the program under title XVIII, XIX, or XXI;

'[C] the excluded provider list system;

'[D] background checks; and

'[E] unannounced pre-enrollment or other site visits.

'[3] ENHANCED OVERSIGHT PERIOD- For purposes of paragraph [1], the Secretary shall establish procedures to provide for a period of not less than 30 days and not more than 365 days during which providers of services and suppliers described in such paragraph, as the Secretary determines appropriate, would be subject to enhanced oversight, such as required or unannounced [or required and unannounced] site visits or inspections, prepayment review, enhanced review of claims, and such other actions as specified by the Secretary, under the programs under titles XVIII, XIX, and XXI. Under such procedures, the Secretary may extend such period for more than 365 days if the Secretary determines that after the initial period such additional period of oversight is necessary.

'[4] MORATORIUM ON ENROLLMENT OF PROVIDERS AND SUPPLIERS- For purposes of paragraph [1], the Secretary, based upon a finding of a risk of serious ongoing fraud within a program under title XVIII, XIX, or XXI, may impose a moratorium on the enrollment of providers of services and suppliers within a category of providers of services and suppliers [including a category within a specific geographic area] under such title. Such a moratorium may only be imposed if the Secretary makes a determination that the moratorium would not adversely impact access of individuals to care under such program.

'[5] CLARIFICATION- Nothing in this subsection shall be interpreted to preclude or limit the ability of a State to engage in provider screening or enhanced provider oversight activities beyond those required by the Secretary.'.

[b] Conforming Amendments-

[1] MEDICAID- Section- 1902[a] of the Social Security Act [42 U.S.C. 42 U.S.C. 1396a[a]] is amended--

[A] in paragraph [23], by inserting before the semicolon at the end the following: 'or by a person to whom or entity to which a moratorium under section 1128G[a][4] is applied during the period of such moratorium';

[B] in paragraph [72]; by striking at the end 'and';

[C] in paragraph [73], by striking the period at the end and inserting 'and'; and

[D] by adding after paragraph [73] the following new paragraph:

'[74] provide that the State will enforce any determination made by the Secretary under subsection [a] of section 1128G [relating to a significant risk of fraudulent activity with respect to a category of provider or supplier described in such subsection [a] through use of the appropriate procedures described in such subsection [a]], and that the State will carry out any activities as required by the Secretary for purposes of such subsection [a].'. [2] CHIP- Section- 2102 of such Act [42 U.S.C. 1397bb] is amended by adding at the end the following new subsection:

'[d] Program Integrity- A State child health plan shall include a description of the procedures to be used by the State--

'[1] to enforce any determination made by the Secretary under subsection [a] of section 1128G [relating to a significant risk of fraudulent activity with respect to a category of provider or supplier described in such subsection through use of the appropriate procedures described in such subsection]; and

'[2] to carry out any activities as required by the Secretary for purposes of such subsection.'. [3] MEDICARE- Section- 1866[j] of such Act [42 U.S.C. 1395cc[j]] is amended by adding at the end the following new paragraph:

'[3] PROGRAM INTEGRITY- The provisions of section 1128G[a] apply to enrollments and renewals of enrollments of providers of services and suppliers under this title.'.